Top asset manager sends a warning to South Africa

Coronation Fund Managers warned that South Africa’s savings market continues to face severe pressure, with no rapid improvements expected in the foreseeable future.

The asset manager said 2025 saw the local savings industry continue its long-term trend of contraction, as consumers remained under pressure and unemployment continued to rise.

On Tuesday, Coronation released its results for the year ended 30 September 2025, which revealed a weak performance for the asset manager.

While the company’s revenue from its fund management activities increased by 10% to R4.29 billion, its profit from these activities grew by a meagre 2%.

In addition, Coronation recorded a 25% decrease in basic and headline earnings per share to 474.3 cents. The company’s profit for the year declined by nearly 24% to R1.68 billion.

Coronation’s total assets under management (AUM) increased by 14% to R761 billion, due to strong outperformance across its fund range, while average AUM increased by 12% to R705 billion.

However, the company warned that South Africa’s savings industry continued its long-term trend of contraction in 2025 as local consumers remained under pressure and unemployment continued to rise. 

It said the implementation of the two-pot retirement system in September 2024 added to these structural headwinds over the past year. 

“As a major player in the South African savings market, we remain exposed to industry trends, and we do not expect to see rapid industry improvements in the foreseeable future,” the asset manager warned.

Despite these headwinds, Coronation’s outflows moderated to 5% of average AUM year-on-year.

The asset manager also declared a final dividend of 254 cents per share.